Friday, June 15, 2007

"Gaza in the hands of Hamas, with masked militants sitting in the president’s chair; the West Bank on the edge; Israeli army camps hastily assembled in the Golan Heights; a spy satellite over Iran and Syria; war with Hezbollah a hair trigger away; a scandal-plagued political class facing a total loss of public faith.

At a glance, things aren’t going well for Israel. But here’s a puzzle: why, in the midst of such chaos and carnage, is the Israeli economy booming like it’s 1999, with a roaring stock market and growth rates nearing China’s?.......

Here’s another theory: Israel’s economy isn’t booming despite the political chaos that devours the headlines, but because of it. This phase of development dates back to the mid-nineties, when Israel was in the vanguard of the information revolution - the most tech-dependent economy in the world. After the dot-com bubble burst in 2000, Israel’s economy was devastated, facing its worst year since 1953. Then came 9/11, and suddenly new profit vistas opened up for any company that claimed it could spot terrorists in crowds, seal borders from attack and extract confessions from closed-mouthed prisoners......

Since Israel began its policy of sealing off the occupied territories with checkpoints and walls, human rights activists have often compared Gaza and the West Bank to open-air prisons. But in researching the explosion of Israel’s homeland security sector, a topic I explore in greater detail in a forthcoming book (The Shock Doctrine: The Rise of Disaster Capitalism), it strikes me that they are something else too: laboratories where the terrifying tools of our security states are being field-tested. Palestinians - whether living in the West Bank or what the Israeli politicians are already calling “Hamasistan” — are no longer just targets. They are guinea pigs.

So in a way Friedman is right: Israel has struck oil. But the oil isn’t the imagination of its techie entrepreneurs. The oil is the war on terror, the state of constant fear that creates a bottomless global demand for devices that watch, listen, contain and target “suspects.” And fear, it turns out, is the ultimate renewable resource."